Interim protection against tax recovery granted pending writ hearing, with continuation tied to an additional deposit condition.

A writ petition challenging an appellate order and the underlying tax demand was directed to proceed on exchange of affidavits because the Appellate Tribunal had not yet been constituted. Taking account of the prima facie case, balance of convenience, and the statutory framework on pre-deposit and further recovery, the HC granted interim protection against coercive recovery for a limited period. Continuation of that protection was made conditional on compliance with the additional deposit directed in the order, while affidavits were ordered to be exchanged for final hearing.

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Issues: (i) Whether the writ petition challenging the appellate order and the underlying tax demand required hearing on affidavits; (ii) whether interim protection against recovery was warranted pending disposal of the writ petition.

Analysis: The Appellate Tribunal had not yet been constituted, and the Court directed that the writ petition be heard on exchange of affidavits. Taking note of the prima facie case, the balance of convenience, and the statutory framework relating to pre-deposit and further recovery, the Court granted interim protection from coercive recovery for a limited period, with continuation of that protection conditioned upon the additional deposit directed in the order.

Outcome: Interim stay granted for a limited period, with continuation subject to the stated deposit condition, and affidavits directed to be exchanged.

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